Differentiate between Central Bank and Commercial Bank.
| Central Bank | Commercial Bank |
| 1. The Central Bank is the apex institution of the monetary and banking structure of the country.2. It is non-profit institution which implements the economic policies of the Government.3. It is owned by the Government.4. It is a banker to the Government and does not engage itself in ordinary banking activities.5. It has the monopoly of note issue.6. The Central Bank is the banker’* bank. As such, it grants accommodations to commercial banks in the form of rediscount facilities, keeps their cash reserves, and clears their balances.7. It controls credit in accordance with the needs of business and economy.8. It helps in establishing financial institution so as to strengthen money and capital markets in a country | (a) The Commercial Bank is one of the organs of the money market.(b) It is a profit making institution.(c) It is owned by shareholders.(d) It is a banker to the general public.(e) It can issue only cheques.(f) It advantages loans to and accepts deposits from the public.(g) It creates credit to meet the requirements of business.(h) It helps industry of underwiriting shares and debentures of a company in returns of a particular commission. |
